OLIN Corp

Sales for the three months ended September 30, 2026 were $1,747.7 million compared to $1,713.2 million in the same period last year, an increase of $34.5 million, or 2%. Epoxy sales increased by $62.6 million, primarily due to higher product pricing and higher volumes. Winchester sales increased by $45.1 million, primarily due to higher ammunition sales to commercial and military customers and increased military project revenue. Chlor Alkali Products and Vinyls sales decreased by $73.2 million primarily due to lower sales volumes, partially offset by higher pricing.

Gross margin decreased $10.7 million for the three months ended September 30, 2026 compared to the prior year period. Chlor Alkali Products and Vinyls gross margin decreased $57.9 million, primarily due to operating issues with the VCM plant at the Freeport, TX facility resulting in higher costs and reduced profit from lost sales and a lower benefit related to the 45V tax credits. Epoxy gross margin increased $33.3 million, primarily due to higher product pricing and volumes, and lower operating costs, partially offset by higher raw material costs. Winchester gross margin increased $15.1 million, primarily due to higher product pricing and higher volumes, partially offset by higher raw material and operating costs. Gross margin as a percentage of sales decreased to 10% during the three months ended September 30, 2026 from 11% during the three months ended September 30, 2025.

Selling and administrative expenses for the three months ended September 30, 2026 were $98.4 million, an increase of $0.3 million from the prior year period. The increase was primarily due to an unfavorable foreign currency impact of $5.6 million, partially offset by lower stock-based compensation costs of $4.5 million, which includes mark-to-market adjustments. Selling and administrative expenses as a percentage of sales were 6% for both the three months ended September 30, 2026 and 2025.

Restructuring charges for the three months ended September 30, 2026 and 2025 were $1.7 million and $2.9 million, respectively. Restructuring charges include facility exit costs, lease and other contract termination costs, employee severance and related benefits costs, and the write off of equipment and facilities.

Acquisition-related costs for the three months ended September 30, 2026 of $13.7 million included costs associated with advisory, legal, accounting, and other professional fees associated with Olin’s pending Merger with Huntsman.

Losses of non-consolidated affiliates relate to Olin’s equity share of the Hidrogenii, LLC joint venture.

Interest expense, net for the three months ended September 30, 2026 was $44.5 million compared to $45.2 million in the prior year period, a decrease of $0.7 million, primarily due to lower average interest rates.

Non-operating pension income includes all components of pension and other postretirement net periodic benefit (income) cost, other than service costs. Non-operating pension income was lower for the three months ended September 30, 2026 compared to the prior year period primarily due to higher actuarial losses recognized to income.

The Company’s effective tax rate fluctuates from period to period based on several factors, including the geographic mix of earnings, the level of income or loss relative to available tax attributes, the recognition of valuation allowances in certain jurisdictions, and discrete tax items. For the three months ended September 30, 2026, the Company recorded income before taxes of $17.1 million and an income tax provision of $2.7 million, resulting in an effective tax rate of 15.8%. The income tax provision for the three months ended September 30, 2026 was primarily attributable to the tax on income before taxes for the period and an expense from valuation allowances on state credits, partially offset by the impact from a higher estimated annual effective tax rate compared with the prior quarter. For the three months ended September 30, 2025, the Company recorded income before taxes of $41.5 million and an associated income tax benefit of $(2.2) million, resulting in a negative effective tax rate of (5.3)%. The income tax benefit for the three months ended September 30, 2025 was primarily attributable to IRA production tax credits, partially offset by a change in tax contingencies and tax on income before taxes for the period.

Sales for the nine months ended September 30, 2026 were $5,072.6 million compared to $5,115.7 million in the same period last year, a decrease of $43.1 million, or 1%. Chlor Alkali Products and Vinyls sales decreased by $400.8 million primarily due to lower volumes and pricing. Winchester sales increased by $180.3 million, primarily due to higher ammunition sales to military and commercial customers and increased military project revenue. Epoxy sales increased by $177.4 million, primarily due to higher volumes and pricing.

Gross margin decreased $51.5 million for the nine months ended September 30, 2026 compared to the prior year period. Chlor Alkali Products and Vinyls gross margin decreased $165.3 million, primarily due to operating issues with the VCM plant at the Freeport, TX facility resulting in higher costs and reduced profit from lost sales, lower product volumes and pricing, and higher raw material costs, partially offset by lower operating costs. Epoxy gross margin increased $98.8 million, primarily due to lower operating costs and higher product volumes and pricing, partially offset by higher raw material costs. Winchester gross margin increased $17.8 million, primarily due to higher pricing and sales volumes, partially offset by higher raw material and operating costs. Gross margin as a percentage of sales decreased to 8% during the nine months ended September 30, 2026 from 9% during the nine months ended September 30, 2025.

Selling and administrative expenses for the nine months ended September 30, 2026 were $346.1 million, an increase of $51.8 million from the prior year period. The increase was primarily due to higher legal and legal-related settlement expenses of $41.7 million, which includes a first quarter 2026 charge of $36.1 million associated with legacy litigation matters, an unfavorable foreign currency impact of $15.0 million and higher stock-based compensation costs of $2.5 million, which includes mark-to-market adjustments. Selling and administrative expenses as a percentage of sales were 7% and 6% for the nine months ended September 30, 2026 and 2025, respectively.

Restructuring charges for the nine months ended September 30, 2026 and 2025 were $21.3 million and $14.3 million, respectively. Restructuring charges include facility exit costs, lease and other contract termination costs, employee severance and related benefits costs, and the write off of equipment and facilities.

Acquisition-related costs for the nine months ended September 30, 2026 of $24.3 million included costs associated with advisory, legal, accounting, and other professional fees associated with Olin’s pending Merger with Huntsman.

Losses of non-consolidated affiliates relate to Olin’s equity share of the Hidrogenii, LLC joint venture.

Interest expense, net, for the nine months ended September 30, 2026 and 2025 was $130.9 million and $138.1 million, respectively, which included $0.2 million and $3.3 million, respectively, for the write-off of unamortized deferred debt issuance costs associated with financing transactions. Without these items, interest expense, net, for the nine months ended September 30, 2026 decreased $4.1 million from the comparable prior year period, primarily due to lower average interest rates.

Non-operating pension income includes all components of pension and other postretirement net periodic benefit (income) cost, other than service costs. Non-operating pension income was lower for the nine months ended September 30, 2026 compared to the prior year period primarily due to higher actuarial losses recognized to income.

The Company’s effective tax rate fluctuates from period to period based on several factors, including the geographic mix of earnings, the level of income or loss relative to available tax attributes, the recognition of valuation allowances in certain jurisdictions, and discrete tax items. For the nine months ended September 30, 2026, the Company recorded the loss before taxes of $(97.4) million and an associated income tax benefit of $(15.5) million, resulting in an effective tax rate of 15.9%. The income tax benefit for the nine months ended September 30, 2026 was primarily attributable to tax on the loss before taxes for the period and IRA production tax credits recognized during the period, partially offset by an expense from prior year tax positions and an expense from valuation allowances on state credits. For the nine months ended September 30, 2025, the Company recorded income before taxes of $36.8 million and an associated income tax benefit of $(5.3) million, resulting in a negative effective tax rate of (14.4)%. The income tax benefit for the nine months ended September 30, 2025 was primarily attributable to IRA production tax credits recognized during the period, partially offset by a change in tax contingencies and tax on income before taxes for the period.